Inspire Medical Systems (INSP) Tops Q4 EPS by 2c, Revenues Beat; Offers FY2) Revenue Guidance Above Consensus

Inspire Medical Systems (NYSE: INSP) reported Q4 EPS of ($0.38), $0.02 better than the analyst estimate of ($0.40). Revenue for the quarter came in at $26.9 million versus the consensus estimate of $23.84 million.

Recent Business Highlights

• Achieved revenue of $26.9 million in the fourth quarter of 2019, a 62% increase over the same quarter last year, and revenue of $82.1 million in full year 2019, a 62% increase over full year 2018
• Provided full year 2020 revenue guidance in the range of $115 million to $119 million, representing growth of approximately 40% to 45% over full year 2019 revenue of $82.1 million
• Activated 33 new U.S. medical centers in the fourth quarter of 2019, bringing the total to 299 U.S. medical centers implanting Inspire therapy
• Created seven new territories, bringing the total to 73 U.S. territories

“The Inspire team and the healthcare providers who prescribe and support Inspire therapy continue to be fully committed to delivering positive and consistent patient outcomes for those with untreated Obstructive Sleep Apnea,” said Tim Herbert, President and Chief Executive Officer of Inspire Medical Systems. “We continue to execute on our balanced commercial growth strategy, which is primarily focused on the U.S. market, with the objective of first, increasing patient flow at existing centers, and second, training and opening new implanting centers. We are confident that we remain well-positioned for long-term success based on our focus on improving utilization and our conversion rate, further advancements in reimbursement, including Medicare, a growing body of clinical evidence, and a robust R&D platform.”

GUIDANCE:

Inspire Medical Systems sees FY2020 revenue of $115-119 million, versus the consensus of $108.8 million.

• Inspire expects full year 2020 revenue to be in the range of $115 million to $119 million, representing growth of approximately 40% to 45% over full year 2019 revenue of $82.1 million. Gross margin for the full year 2020 is anticipated to be in the range of 82% to 84%.
• In addition, Inspire increased its guidance on opening new U.S. medical centers to a range of 20 to 24 per quarter in 2020, compared to the prior guidance of 15 to 17 centers per quarter. Inspire also increased its guidance on adding new territories to a range of six to seven new territories per quarter in 2020, compared to the prior guidance of four to five territories per quarter.

For earnings history and earnings-related data on Inspire Medical Systems (INSP) click here.

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